Volkswagen opened up its first American assembly plant a few years ago in Chattanooga, TN. It was a tremendous investment for the city and surrounding region (including northwest Georgia). Now, another big announcement has been made: Volkswagen will build a new assembly facility to produce its new crossover SUV in Chattanooga.
The $600 million plant has been the worst kept secret for a while now. There have been rumblings of VW building the new plant next to its existing Passat assembly plant for a couple of years, and now it’s official. From the Chattanoogan.com:
VW officials said Monday morning, “Within the framework of its Strategy 2018 plan, the Volkswagen Group is expanding its industrial footprint in the US. The Board of Directors of Volkswagen Group of America has decided to award the production of the new midsize SUV to the Chattanooga plant in Tennessee. The Group will be investing a total of approximately US $900 million (€643 million) in the production of a newly developed, seven-passenger SUV, and creating 2,000 additional jobs in the US. About US $600 million (€432 million) will be invested in Tennessee.
Prof. Dr. Martin Winterkorn, chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg, said, “The United States of America is and will remain one of the most important markets for Volkswagen. Over the past few years, we have achieved a lot there. We are now launching the second phase of the Volkswagen campaign in the US. With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the US customer. This is also a strong signal for the US as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America.”